One of our partners is an RFID integrator, so that you can learn more about the principles of functioning of this technology, please read the article below.
In today’s business, one of the possible definitions of the type of organization is the division into the innovative ones and the rest, which copies solutions from leaders in their industries. Often inefficiently. This is one of the reasons why some companies struggle with high costs of logistics operations in warehouses, or operations in general, and also have problems with effective planning and implementation of their processes of receipt and release of goods.
The use of RFID technology opens up new opportunities for all companies – it will allow innovative leaders to rise to a higher organizational level, while companies that only copy solutions can help build a competitive advantage, increase market shares, and thus accelerate the company’s growth.
Basic RFID systems using RFID tags, gates and handheld readers allow you to streamline warehouse processes, including receipts and releases of goods to and from the warehouse, and also help in inventory. For industries where the unit price of goods is low, systems that use the marking of logistic units themselves – picking containers or pallets (RTI – Returnable Transport Items) are used. This solution allows you to automate whole pallet transactions, but also makes it easier to track and manage the containers themselves (where and how much was sent, how much and from where it was returned). If the company is so well organized that most of the goods are transported in RTI containers, the reduction of labor in warehouse processes is at least 30%. The return on investment can be increased by choosing the use of mobile RFID gates (e.g. HD-PBM01 designed and manufactured by HADATAP), which we move to a specific dock in case of the need to register receipt or release. This solution allows to reduce the number of gates to the number of actually used docks at a time.
Hrafn’s RFID gate prototype – photo from RFIDJournal.com
The next step in improving warehouse processes is sharing information with other organizations in the supply chain. In order to standardize data exchange, EPCglobal (GS1) developed EPCIS – Electronic Product Code Information Services. Using this standard, we can send key business information regarding the time, location, type of event and reason for the action taken for each event related to any tagged object in the supply chain. The use of EPCIS facilitates communication with the supplier who sends the electronically agreed delivery advice. Similarly in the case of shipments – the system can check the correctness of the quantity and type of goods issued with the customer’s order, inform about any discrepancies when the goods cross the warehouse gates, or send information to the customer about the completed shipment of goods. The information provided significantly improves communication and counteracts bottlenecks. The effect of using the information exchange system in the supply chain is presented in the chart below:
Answering the question “who is RFID for?” it should be recognized that radio frequency identification systems are able to improve warehouse and logistics processes in every company that is characterized by intelligence. The effect of using such a system will be the more visible, the better the company’s managers are able to use the information flowing from it. The development of technologies and products in recent years allows for a satisfactory return on investment in distribution companies, regardless of the size of their area of operation, the unit price of goods or the organization of work. Of course, the best implementation effect will be achieved by companies with a very high turnover of goods, a low inventory turnover ratio in days and a high unit price of goods, because this is influenced by the scale effect. However, nothing stands in the way of successfully using these technologies in other organizations as well. The proof of this are the implementations in second-hand clothing wholesalers, companies from the automotive industry in the “aftermarket” area, or sports equipment rentals.